Gyeongbuk Province Launches Full-Scale Carbon Neutral Industry Transition... Selected for 'Vulnerable Area Fair Transition Support Project'

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Gwiyeol, Yeongnam Reporting Headquarters Reporter Hwang Duyul] Gyeongsangbuk-do has been finally selected for the Ministry of Trade, Industry and Energy's public project, the ‘Support Project for Fair Transition in Vulnerable Areas,’ and will actively support the transition of local manufacturing industries to low-carbon industries.

The support for fair transition in vulnerable areas is a project that supports regions and companies with high greenhouse gas emissions that are expected to suffer damage during the carbon neutrality implementation process.

This involves diagnosing the carbon emission structure and characteristics of the region's main industries and preparing customized support plans aimed at achieving the 2050 carbon neutrality goal.

Gyeongbuk Province applied for the pilot implementation area in 2022, selecting Gumi, considering the status of local manufacturing and characteristics by industry.

Based on a preliminary corporate demand survey, customized support projects for companies were also prepared to thoroughly respond to the public offering.

Gyeongbuk's manufacturing industry holds a key share in all economic indicators such as production, export, and employment both nationwide and within the region, but it has a carbon-intensive industrial structure and a low proportion of renewable energy.

It was also found that local small and medium-sized enterprises have insufficient response plans for greenhouse gas reduction.

Survey Results Table on Carbon Neutrality Status for Manufacturing Companies in the Gumi Area.

Accordingly, the plan is to create new carbon-neutral business models through customized consulting for SMEs and support investments in carbon reduction facilities for SMEs urgently needing low-carbon process transition, thereby spreading cases of low-carbon process transition.

It plans to invest 720 million KRW annually to support carbon neutrality capacity-building training for workers in high carbon-emitting industries and reemployment education in other industries to strengthen workers' carbon neutrality capabilities.

Gyeongbuk Province plans to use this project as an opportunity to enhance industrial competitiveness and create new growth engines by establishing low-carbon strategies such as raw material conversion, energy efficiency, and innovative processes tailored to the characteristics of manufacturing industries by sector.

Jang Sang-gil, Director of the Science and Industry Bureau of Gyeongbuk Province, said, “Carbon neutrality is a difficult task for our region with a manufacturing-centered industrial structure, but we must respond effectively to carbon neutrality through proactive investment and technological innovation,” adding, “We will actively support the transition of local SMEs to a low-carbon industrial structure and the fostering of carbon-neutral industries.”